How Oil and Gas Invoice Factoring Will Benefit Your Business
Are you fed up with waiting for your account receivables to be paid back? We understand your grief! Running a smooth operation costs money and when you continuously have to wait for funds it can put you behind or halt your growth.
Ready for the good news? You no longer have to wait for your money! Rather than waiting over a month to get your invoices paid back you can get paid immediately with oil and gas factoring.
Numerous industries can benefit from oil and gas factoring. Whether you are involved in exploration, site preparation, pipeline construction, operating field properties on contract, or surveying and mapping for oil and gas, or otherwise, you can find financial relief. Because slow-paying customers can put a financial burden on your company, invoice factoring is the best solution.
Take a look below to find out some more benefits of using invoice factoring today!
1. Consistent cash flow
Not getting paid on time can cause a halt in your cash flow. If you need a consistent cash flow to expand, meet payroll, purchase new equipment, etc., then invoice factoring is the best solution.
2. No more worrying about expenses like payroll
If you’re waiting on invoices to get paid you may have trouble with meeting all your expenses. Yet, when you factor, you can receive that money right away to be sure you won’t get behind in the slower seasons.
3. Quick and easy process
Factoring is one of the simplest processes to getting the funds you need. It is a fast and easy and doesn’t require a credit check. Because the factoring company is purchasing your invoices they only run a check on your clients, not your business. This is beneficial if your company is trying to work its way out of debt and gain a better credit score. Another benefit of the process is that it is flexible. You can choose which invoices you want to factor, whenever you need to.
4. Upfront cash allows your business to grow
If you’re always waiting for the next invoice to be paid, you most likely won’t have the funds you need to expand. When you’re ready for growth, a reliable cash flow is essential.
5. No new debt acquired
With factoring, you are not taking on new debt like with a bank loan. This is extremely beneficial for companies that are trying to work their way out of debt.
How Oil and Gas Invoice Factoring Works
Oil and factoring is a simple process. If you’re looking for a quick and easy way to get paid, this is it. Don’t put yourself through the long, tedious process of getting a bank loan. See below how easy the factoring process is.
- Submit your invoice(s) to the factoring company
- The factoring company verifies the invoice
- Within 24 hours you will receive upfront cash of up to 96% of the invoice
- After the client pays the invoice, you receive the rest of the sum, minus a small factoring fee
If you’re looking for the best solution for your finances, oil and gas factoring is the most beneficial option.